Food and beverage establishment share in the GCC by category 2015
In 2015, there were about 52,855 food and beverage establishments registered in the Gulf Cooperation Council region (GCC). Amongst them, about 40 percent were quick service and fast-food restaurants.
Growth in disposable income among consumers has led to their attitudes changing towards food. Coupled with higher health awareness, due to the increasing incidence of chronic diseases in the GCC, there has been a larger demand for healthy food. Food and beverage establishments now increasingly adopt health and wellness trends in their menus offering organic and allergen-free items. UAE’s food sector, for example, has witnessed growth with quality food a key driver and health-consciousness a key trend.
Along with Saudi Arabia’s large young population with high disposable incomes, the current expansion of the tourism and entertainment industries is expected to result in a huge shift in the retail and food and beverage sectors. Trends that are set to lead the way in Saudi Arabia include emphasis on overall experience, healthy and sustainable eating, and ‘home grown’ brands.
GCC food industry overview
The food and beverage sector in the Gulf Cooperation Council (GCC) states is expected to continue to grow with Saudi Arabia alone accounting for 18 percent of the market share, followed by the UAE. The third-largest market in the region, Kuwait, is expected to expand the quickest. The highest average spending on fast-food in 2015 in the region was in Dubai and Doha.Growth in disposable income among consumers has led to their attitudes changing towards food. Coupled with higher health awareness, due to the increasing incidence of chronic diseases in the GCC, there has been a larger demand for healthy food. Food and beverage establishments now increasingly adopt health and wellness trends in their menus offering organic and allergen-free items. UAE’s food sector, for example, has witnessed growth with quality food a key driver and health-consciousness a key trend.
Saudi food industry
Saudi Arabia’s food and beverage industry is the largest in the Middle East. The industry is also of high importance to its economy as it accounts for a significant portion of the country’s GDP. The highest growth rate of the food delivery service industry in 2020 was in Saudi Arabia at more than 170 percent. In the first quarter of 2021, Mrsool had more than 75 percent of the market share of the food delivery service in the country and had the second-largest market share in the Middle East after Talabat.Along with Saudi Arabia’s large young population with high disposable incomes, the current expansion of the tourism and entertainment industries is expected to result in a huge shift in the retail and food and beverage sectors. Trends that are set to lead the way in Saudi Arabia include emphasis on overall experience, healthy and sustainable eating, and ‘home grown’ brands.
